Intel Reorganizes Business Units, Forms 'New Devices' Group

Newly appointment Intel CEO Brian Krzanich is wasting little time in making some sweeping changes at the chip maker.

Reuters reported Tuesday that Krzanich has formed a new business unit aimed at emerging products, particularly in the mobile market, known as the "new devices group." Intel confirmed the changes to Reuters, which also reported that Mike Bell, currently vice president and general manager of Intel's Mobile and Communications Group, will head up the new devices group.

While Intel owns the vast majority of the PC chip market, the company has struggled to gain a foothold in the mobile device market against chief rival ARM Holdings, which licenses its processor architecture to mobile chip companies like Qualcomm, Samsung and Nvidia.

There are more changes, too. Intel's main business units, which previously reported to Intel Architecture Group head Dadi Perlmutter, will now report directly to Krzanich. Those groups include the PC Client Group, Data Center and Connected Systems Group, Software and Services Group, and Mobile and Communications Group.

Perlmutter, a 33-year Intel veteran, will continue to serve the chip maker as executive vice president and general manager of Intel's Architecture Group.

Meanwhile, Renee James, who was recently named president of Intel, will also oversee Intel's manufacturing operations and security business, in addition to her corporate strategy and planning duties. Doug Fisher, corporate vice president and general manager of Intel's System Software Division, has been tapped to take over James' previous role as vice president and general manager of the Software and Services Group.

Joe Lore, sales director at Intel partner Sunnytech in Woburn, Mass., is excited about Intel's push into the mobile chip space. "I think it's a good thing for us and for Intel," Lore said. "We're starting to see a lot of interest in tablets in education clients, for example, and a lot of the deals are coming down to Windows 8 or Apple devices, so the better Intel does [in the mobile space], the better it is for us."

Doron Kempel says selling hyper-convergence can be challenging for solution providers, but success will come from taking business from competitors that are unprepared or hesitant to embrace the technology.